Terms of Service

On July 29, 2016, the Southern District of New York, in Meyer v. Kalanick, refused to enforce mandatory arbitration and jury waiver provisions against a putative class of Uber consumers. In a lengthy and strongly worded decision by Judge Rakoff, the Court held that consumers had not received sufficient notice of, and did not assent to, the online terms of service that contained the arbitration and waiver clauses at issue.

Every company that seeks to implement contractual commitments through online terms and policies should pay close attention to this decision. While not binding in other jurisdictions outside the SDNY, Meyer reflects a growing trend of more exacting judicial scrutiny on the enforceability of online agreements across the country, and represents an important development in a rapidly developing area of the law.

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